---
title: "What is the difference between financial aid and merit-based scholarships?"
description: "Merit-based aid is institutional grant aid that is offered to students based on the overall strength of their admissions application. Need-based grant aid is institutional grant aid that is based on an applicant's financial aid application."
url: "https://www.collegeaccessprogram.in/faq/what-is-the-difference-between-financial-aid-and-merit-based-scholarships/"
updated: "2026-01-09"
category: Study in USA
---

# What is the difference between financial aid and merit-based scholarships?

Merit-based aid is institutional grant aid that is offered to students based on the overall strength of their admissions application. Need-based grant aid is institutional grant aid that is based on an applicant's financial aid application.